FUNDAMENTAL PAYROLL CERTIFICATION EXAM
QUESTIONS AND ANSWERS (VERIFIED AND WELL
DETAILED ANSWERS) LATEST UPDATE 2025/2026
Benefits paid through social security - CORRECT ANSWER
retirement, disability, & survivors
Common law test - CORRECT ANSWER a worker is a common law
employee if the employer has the right to control what work will be done
& how it will be done
Behavioral control - CORRECT ANSWER the right to direct or control
the means by which the worker performs the work to be done (including
instructions & training)
Financial control - CORRECT ANSWER whether a worker has the
opportunity to make a profit or suffer a loss
Relationship of the parties - CORRECT ANSWER the examination of
how the worker & employer perceive their relationship
Reasonable bias test - CORRECT ANSWER allows employers to treat
workers who would be considered employees under the common law
test as individual contractors
,W-9 Form - CORRECT ANSWER Request for Taxpayer Identification
Number & Certification; used by nonemployees/payees to provide a
taxpayer ID # (TIN) (SSN or EIN) to the company for which the
nonemployee/payee has received a reportable payment
Minimum weekly salary 2022 - CORRECT ANSWER $684.00
Federal minimum wage 2022 - CORRECT ANSWER $7.25/hours
Opportunity wage - CORRECT ANSWER a lower minimum wage for
teenage employees under 20 of $4.25 (only for their first 90 days of
employment)
Tip pay requirements - CORRECT ANSWER $2.13 in minimum wage
as long as their tips amount is high enough to raise their pay to minimum
wage
Nondiscretionary bonus - CORRECT ANSWER contractual bonuses
related to the employee's production, efficiency, or some measure of
performance (commissions, quality bonus, production bonus)
Engaged to be waiting - CORRECT ANSWER compensable worktime
because the employer requires the employee to wait to begin work
Waiting to be engaged - CORRECT ANSWER not work time;
employee is freed from duties for a period of time
,Types of compensation that the FLSA excludes from regular rate of pay
- CORRECT ANSWER pay for time not worked (holiday pay),
contributions to benefits plans (401K), or reimbursement of business
expenses
Does FLSA require payments for working holidays, evenings, or night
shifts? - CORRECT ANSWER No
When can an employee file an exempt W-4? - CORRECT ANSWER
when they had no tax liability last year & expect to have none for this
year
When should employers remind employees to submit new W-4s by if
their anticipated filing status or federal income tax liability has changed?
- CORRECT ANSWER By December 1st
Does regular rate of pay include shift premiums? - CORRECT
ANSWER Yes
Form SS-5 - CORRECT ANSWER application for a social security
card
Allowable tip credit - CORRECT ANSWER no more than $5.12 per
hour
, Child labor under the age of 18 - CORRECT ANSWER Department of
Labor restricts working in a job declared hazardous
Backup withholding - CORRECT ANSWER 24% FIT withholding on
reportable non-payroll payments when a TIN is not provided or the
organization is notified by the IRS; reported annually on Form 945
Form W-4P - CORRECT ANSWER Withholding Certificate for
Pension or Annuity Payments; allows pension of annuity payment
payees the ability to claim marital statues and allowances for federal
income tax withholding
When must an amended W-4 be implemented? - CORRECT ANSWER
within the first payroll no later than 30 days after the form is submitted
Administrative employee duties - CORRECT ANSWER performing
nonmanual or office work directly related to the management of business
operations of the employer or customers (exempt)
4 types of white collar exempt employees - CORRECT ANSWER
administrative, executive, professional, & outside sales
Federal wage and hour law - CORRECT ANSWER Fair Labor
Standards Act (FLSA); covers minimum wage, overtime requirements,
child labor rules, & equal pay rules
QUESTIONS AND ANSWERS (VERIFIED AND WELL
DETAILED ANSWERS) LATEST UPDATE 2025/2026
Benefits paid through social security - CORRECT ANSWER
retirement, disability, & survivors
Common law test - CORRECT ANSWER a worker is a common law
employee if the employer has the right to control what work will be done
& how it will be done
Behavioral control - CORRECT ANSWER the right to direct or control
the means by which the worker performs the work to be done (including
instructions & training)
Financial control - CORRECT ANSWER whether a worker has the
opportunity to make a profit or suffer a loss
Relationship of the parties - CORRECT ANSWER the examination of
how the worker & employer perceive their relationship
Reasonable bias test - CORRECT ANSWER allows employers to treat
workers who would be considered employees under the common law
test as individual contractors
,W-9 Form - CORRECT ANSWER Request for Taxpayer Identification
Number & Certification; used by nonemployees/payees to provide a
taxpayer ID # (TIN) (SSN or EIN) to the company for which the
nonemployee/payee has received a reportable payment
Minimum weekly salary 2022 - CORRECT ANSWER $684.00
Federal minimum wage 2022 - CORRECT ANSWER $7.25/hours
Opportunity wage - CORRECT ANSWER a lower minimum wage for
teenage employees under 20 of $4.25 (only for their first 90 days of
employment)
Tip pay requirements - CORRECT ANSWER $2.13 in minimum wage
as long as their tips amount is high enough to raise their pay to minimum
wage
Nondiscretionary bonus - CORRECT ANSWER contractual bonuses
related to the employee's production, efficiency, or some measure of
performance (commissions, quality bonus, production bonus)
Engaged to be waiting - CORRECT ANSWER compensable worktime
because the employer requires the employee to wait to begin work
Waiting to be engaged - CORRECT ANSWER not work time;
employee is freed from duties for a period of time
,Types of compensation that the FLSA excludes from regular rate of pay
- CORRECT ANSWER pay for time not worked (holiday pay),
contributions to benefits plans (401K), or reimbursement of business
expenses
Does FLSA require payments for working holidays, evenings, or night
shifts? - CORRECT ANSWER No
When can an employee file an exempt W-4? - CORRECT ANSWER
when they had no tax liability last year & expect to have none for this
year
When should employers remind employees to submit new W-4s by if
their anticipated filing status or federal income tax liability has changed?
- CORRECT ANSWER By December 1st
Does regular rate of pay include shift premiums? - CORRECT
ANSWER Yes
Form SS-5 - CORRECT ANSWER application for a social security
card
Allowable tip credit - CORRECT ANSWER no more than $5.12 per
hour
, Child labor under the age of 18 - CORRECT ANSWER Department of
Labor restricts working in a job declared hazardous
Backup withholding - CORRECT ANSWER 24% FIT withholding on
reportable non-payroll payments when a TIN is not provided or the
organization is notified by the IRS; reported annually on Form 945
Form W-4P - CORRECT ANSWER Withholding Certificate for
Pension or Annuity Payments; allows pension of annuity payment
payees the ability to claim marital statues and allowances for federal
income tax withholding
When must an amended W-4 be implemented? - CORRECT ANSWER
within the first payroll no later than 30 days after the form is submitted
Administrative employee duties - CORRECT ANSWER performing
nonmanual or office work directly related to the management of business
operations of the employer or customers (exempt)
4 types of white collar exempt employees - CORRECT ANSWER
administrative, executive, professional, & outside sales
Federal wage and hour law - CORRECT ANSWER Fair Labor
Standards Act (FLSA); covers minimum wage, overtime requirements,
child labor rules, & equal pay rules
